NEW YORK–Former Gov. Jon Corzine has agreed with other former directors and officers of MF Global Holdings, the failed brokerage that bet big on European bonds and lost, has agreed to settle an investor lawsuit for $64.5 million. U.S. District Judge Victor Marrero gave preliminary approval of the deal Tuesday, according to court filings, and scheduled… Read the rest of this entry »

Few of the financial titans who ran firms into the ground over the past decade are as deeply connected on Wall Street and in Washington, D.C., as Jon Corzine, onetime New Jersey governor and U.S. senator and the former CEO of both Goldman Sachs and the now-defunct brokerage house MF Global. A testament to that may… Read the rest of this entry »

Former Governor Jon Corzine will not face criminal charges for his role in the collapse of MF Global, the investment firm he led after leaving office in New Jersey, according to a report in the New York Post.

“After 18 months of investigation, the criminal probe into Jon Corzine is now being dropped,” a person with knowledge of the probe told The Post.

“There is no evidence of criminal wrongdoing,” this person said.

The Justice Department’s decision to drop the case is sure to come as a relief to Corzine, who has been widely blamed for MFG’s bankruptcy — as well as the misuse of some $1.6 billion in customers’ funds.

Last week, Corzine was hit with civil charges by the Commodities Futures Trading Commission in connection with the illegal tapping of the funds, which were improperly co-mingled with the MFG’s house money in the firm’s final days.

Two directors of the National Futures Association will propose that former New Jersey Governor Jon Corzine be banned from the industry when the group meets tomorrow, according to a report in The New York Post.

Menendez calls for ‘system controls’ when JP Morgan makes a risky bet with its own money, but looks the other way when individuals and families lose their savings with MF Global

Middletown, May 15…When individuals and their families lost their savings with MF Global, Bob Menendez protected his ally Jon Corzine by steering the Senate Banking Committee’s investigation away from the CEO’s role in the collapse. Yet, when asked about JP Morgan’s loss resulting from a risky bet, Menendez called for ‘system controls.’ Menendez’s self-serving double standard of protecting his political allies- like Jon Corzine and the rest of the executive team- while calling for everyone else to play by the rules has got to stop.

“The collapse of MF Global and the risky bet placed by JP Morgan clearly demonstrate that regulators need to take a closer look at Wall Street practices and institute reforms to protect investors and the economy as a whole,” said Joe Kyrillos, who has been calling for Menendez to recuse himself from the banking committee’s investigation citing conflict of interest.

“People who took advantage of the lack of controls on Wall Street need to be held accountable. Menendez has again proved that he is not willing to put his personal ties aside to serve as an unbiased congressional investigator. The people of New Jersey deserve someone who is looking out for their best interests- not the best interests of past political cronies.”

Two Piscataway physicians, Drs. John and Alieta Eck, who provide charity medical care to the needy, had an investment account with MF Global that was completely wiped out as a result of the collapse. The Doctors Eck lost $200,000 and rightly demand answers from a thorough Senate investigation.

“The fact that Menendez failed to even mention the CEO Jon Corzine by name demonstrates that he is putting his personal relationship with the CEO ahead of the customers of MF global and the people of New Jersey. This requires a fair and comprehensive investigation, not a political whitewash,” said Dr. John Eck.

In an interview on MSNBC yesterday discussing the JP Morgan loss, Menendez said, “What I care about is not an individual, I care about a system. Having system controls to ensure that no matter who is at the head of a company, this can’t happen.”

It is clear Menendez doesn’t care about holding ‘individuals’ accountable. See no evil. Hear no evil. Time and again, he has proved unwilling to put his oversight role on the Senate Banking Committee above his self-serving double standard. The people of New Jersey can no longer afford to play second fiddle to Menendez’s political allies.

Family practitioners John and Alieta Eck lost $200,000 in non-investment MF Global account

Middletown, April 4… Today, Piscataway family practitioners, Drs. John and Alieta Eck, joined Senator Kyrillos in asking U.S. Senator Bob Menendez to recuse himself from the Senate Banking Committee’s investigation into the collapse of MF Global. The Doctors Eck had $200,000 in a non-investment account that was completely wiped out as a result of the company’s collapse. They have not received any repayment of their money from MF Global.

“My wife and I were devastated when money that we though was safe was taken from us with no explanation. We were counting on this money for our retirement, and now we many never see it again. We stand firmly with Senator Kyrillos in asking Bob Menendez to step aside from the MF Global investigation proceedings. The fact that Menendez failed to even mention the CEO Jon Corzine by name demonstrates that he is putting his personal relationship with Corzine ahead of the investors of MF global and the people of New Jersey. This requires a fair and comprehensive investigation, not a political whitewash.”

Yesterday, Senator Kyrillos, called on Menendez to recuse himself from the Senate Banking Committee investigation, citing a conflict of interest.

“Recent press accounts and Menendez’s own actions during investigatory hearings are making it seem as if he is trying to protect the man who appointed him to the Senate. As a Senate committee with direct oversight of the MF Global regulators, it is Menendez’s duty to put his personal ties aside, and get to the bottom of this. That is why he needs to recuse himself from further proceedings immediately.”

Last week during the hearing, Senator Menendez made it a point to steer the Committee’s investigation away from Corzine’s role in MF Global collapse: See no evil. Hear no evil.

The column continued, saying Menendez doesn’t want to be “questioning the man who handed him his current job.”WATCH VIDEO: Menendez makes it a point to steer the Committee’s investigation away from Corzine’s role in MF Global collapse: See no evil. Hear no evil.

I watched the first half hour or so of Jon Corzine’s testimony yesterday, ready to catch him in double speak, as I have before. I am definitely biased. I have not liked the man since the day I met him at the Sea Gulls Nest when he was running for U.S. Senate in the summer of 2000.

The former governor, senator and master of the universe did not disappoint. He blamed the collapse of MF Global on market conditions. He blamed his inability to answer questions on the committee not giving him enough time and the fact that he didn’t have access to MF Global records, noting that he offered to testify voluntarily in January rather than under subpoena yesterday. He painted his willingness to testify, rather than invoke the fifth amendment as his attorneys undoubtedly advised him to do, as a noble gesture rather than another reckless bet on his brilliance.

Corzine said, “I simply don’t know where the money is,” referring to the $1.2 billion in customer cash missing from the MF Global coffers. Of course you don’t know where it is now, I thought, did you know where it was in October?

When asked directly by House Agriculture Committee Chairman Frank Lucas if he had authorized the transfer of customers’ funds, Corzine dodged the question and talked about his intentions. He was obviously well prepared and coached.

Sommers said the Commodity Futures Trading Commission is untangling complicated client accounts and “tens of thousands” of transactions to learn the whereabouts of “every single penny.”

She added that commodity brokerages are barred from using client money for their own investments, and there’s no evidence MF Global did that. If firms do use “segregated” client funds — which they may do for a small number of legally authorized purposes — they should immediately replace the money, she said.

Companies can’t “take money out of a segregated account, invest it, and then return the money … at some later time,” she testified.

“I would say we have suspicions, but we don’t have the knowledge” that client funds were illegally used, he said.

I was willingly rushing to judgement.

Corzine speculated that maybe the money was owed to the firm by other banks or brokerages that hadn’t returned it as agreed. That sounds like wishful thinking, but I wouldn’t put that past some bankers. Hopefully that is that case and the farmers and investors can get their money back as a result of the investigation.